The recent discovery made by the Twitter account 24HRSCRYPTO shows that XRP’s total supply has noticeably decreased in the last month. Around 247,016 XRP tokens have been permanently burned and taken out of circulation during this period, averaging about 8,233 tokens per day.
Neil Hartner, a senior software engineer at Ripple, took to Twitter to explain the reason behind this unexpected spike in XRP burn. He clarified that the reduction in supply was a result of account deletions on the XRP Ledger network. Each deletion led to the burning of two XRP tokens.
This is mostly the result of XRPL account deletions. Each account deletion burns 2 XRP. In June 2023, Poloniex alone deleted 85,566 old XRPL accounts which burned 171,132 XRP. They have finished deleting accounts. https://t.co/07M1IpGkYw https://t.co/cA5mVUVbGR
— Neil Hartner (@illneil) July 5, 2023
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Hartner revealed that these account deletions primarily focused on old accounts that previously held a balance of 20 XRP, which used to be the required reserve amount.
One event that contributed to this phenomenon was the actions taken by Poloniex in June 2023. The popular cryptocurrency exchange deleted a remarkable 85,566 outdated XRPL accounts, resulting in the burning of 171,132 XRP tokens.
However, according to the Ripple engineer, this process has now been completed, suggesting that the account deletions are unlikely to continue on a similar scale in the near future.
Impact and Potential Implications
The significant decrease in XRP’s total supply due to the recent burn spike has raised questions about its impact on the token’s value and potential implications for the network. While it is difficult to predict the exact consequences, this event may have effects on the XRP ecosystem.
The significant decrease in the XRP total supply due to the recent burn has raised questions about its impact on the broader ecosystem. While it’s too early to determine the precise consequences, this event has sparked discussions among XRP enthusiasts.
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Some believe that the decreased supply could potentially create scarcity, leading to increased demand and a positive impact on the token’s value. On the other hand, skeptics argue that such a reduction might not significantly affect the market dynamics, suggesting that other factors like adoption and regulatory developments play a more significant role.
As the XRP community analyzes the implications of this supply reduction, market observers will closely watch for any notable shifts in trading patterns, investor sentiment, and overall market behavior in the coming weeks.
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